Spartech Corp has a market cap of $126.1 million; its shares were traded at around $3.84 with a P/E ratio of 22.7 and P/S ratio of 0.1.

Highlight of Business Operations:

Net sales were $298.3 million and $580.1 million for the three and six months ended May 5, 2012. This reflects a 5% increase from price/mix and a 1% increase in underlying volume for the three month comparison and a 7% increase from price/mix, an 4% increase in volume from the impact of an extra week and a 1% increase in underlying volume for the six month comparison. The price/mix increases were related to a product mix that included a greater percentage of higher priced products. Our underlying sales volume increased due to specific end markets discussed below. Operating earnings excluding special items were $8.5 million and $8.0 million for the three and six months ended May 5, 2012, compared to operating earnings excluding special items of $7.6 million and $6.7 million in the same periods of 2011.

Income tax expense was $1.9 million and $0.7 million for the three and six months ended May 5, 2012 compared to $1.6 million of expense and a $1.0 million benefit in the the same periods of the prior year. In addition to the lower earnings reported for first six months of 2011, the income tax benefit can be attributed to a reorganization of the Company's legal entities which resulted in a one-time $0.8 million deferred benefit.

We reported net earnings from continuing operations of $3.7 million or $0.12 per diluted share and $1.4 million or $0.05 per diluted share for three and six months ended May 5, 2012, compared to net earnings from continuing operations of $2.8 million or $0.09 per diluted share and $1.0 million or $0.03 per diluted share for the same periods in the prior year. Excluding special items (restructuring and exit costs), we reported net earnings from continuing operations of $3.7 million or $0.12 per diluted share and $1.4 million or $0.05 per diluted share for the three and six months ended May 5, 2012, compared to net earnings of $3.2 million or $0.10 per diluted share and $1.9 million or $0.06 per diluted share for the same periods in the prior year.

Operating earnings excluding special items were $8.6 million and $11.8 million for the three and six months ended May 5, 2012 compared to $8.0 million and $13.2 million for the same periods in the prior year. The increase in earnings for the three month period comparison can be attributed to an increased mix of higher margin products and operating improvements such as increased production yield and regrind material usage, which were slightly offset by increased costs related to compensation, repairs and maintenance and travel expense. The decrease in earnings for the six month period comparison can be attributed to increased costs related to compensation, repairs and maintenance, utilities, freight, travel expenses and consulting costs to initiate our turnaround effort. The increased costs were only somewhat offset by a greater mix of high margin products. Both costs and volume were increased by the inclusion of an extra week during the first half of 2012 compared to the same period last year.

Operating earnings excluding special items were $5.2 million and $8.9 million for the three and six months ended May 5, 2012 compared to $6.5 million and $11.2 million for the same periods in the prior year. The decrease in earnings for both period comparisons can be attributed to the decrease in volume, which was somewhat offset by a greater mix of high margin product compared to the prior year. The six month comparison also reflects a decrease in earnings attributable to increased costs related

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